Des Moines Flex Space
For Sale
$15,475,954
535 Southwest 7th Street, Des Moines, IA 50309
Portfolio of flexible office, warehouse, and showroom spaces for sale.
Property Size229,164 SF
Price / SF$67.53
Days on Market141
Property Features for 535 Southwest 7th Street
General Information
Standard status
Active
Size
229,164 SF
Property subtype
Industrial
Listing Agency:
CBRE
(515) 210-3050
Listed By:
Bill Wright · License #S33231000
(515) 210-3050
Source:
Cbre
Added: Mar 25
Changed: Aug 8
Last Checked: Aug 8 at 12:02PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of CBRE
Investment Insights
Based on property information with market context.
This portfolio offers a unique opportunity to own a collection of small bay format buildings suitable for office, warehouse, and showroom purposes. The strategic location bridges suburban access with urban amenities. The portfolio benefits from its position along multiple mass transit bus routes, providing convenient and frequent access. Nearby amenities include hotels with conference facilities, restaurants, retail options, medical facilities, and the Court Avenue Entertainment District. The opportunity to own this portfolio is almost singular in nature as there exists significant barriers to development of similar small bay product near to the Central Business District. The property contains 229164 square feet.
Key Highlights
- Strategic location bridging suburban access and urban amenities.
- Significant barriers to entry for similar small bay product development.
- Optimum flexibility for office, warehouse, and showroom needs due to small bay format.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$1,284,089
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.30%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$25,681,780
$25.7M
Cap Rate 7%
$18,344,129
$18.3M
Cap Rate 9%
$14,267,656
$14.3M
Market Conditions
NOI Build-Up for 229,164 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$2.14M $9.36/SF
− Vacancy
−$169.5K −$0.74/SF
EGI
$1.98M $8.62/SF
− OpEx
−$691.4K −$3.02/SF
NOI
$1.28M $5.60/SF
Area
Des Moines, IA
Vacancy
7.90%
Lease Rate
$9.36 /SF/Yr
Expense Ratio
35.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$25,681,780
Cap Rate 7%
$18,344,129
Cap Rate 9%
$14,267,656
Alternative Uses
Best Use
Flex RnD
$18.34M
$16.05M – $21.40M
NOI $1,284,089 @ 7.0% cap · market cap 8.30%
Second Best
Warehouse
$15.38M
$13.46M – $17.94M
NOI $1,076,406 @ 7.0% cap · market cap 6.96%
Theoretical Best
Office A
$56.44M
$49.38M – $65.85M
NOI $3,950,714 @ 7.0% cap · market cap 25.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,233
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 50309, IA
9,532
Population
7,562
Households
1.3
Avg Household Size
30
Median Age
67%
College-Educated
96%
High-School Grad
2.7 sq mi
ZIP Area
3,530
Density / Sq Mi
$57,974
Median Household Income
$52,775
Median Earnings
$1,166
Median Rent
$286,900
Median Home Value
Market
Vacancy Rate% for Industrial in Des Moines, IA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Portfolio of flexible office, warehouse, and showroom spaces for sale.
Where is this flex space located?
The property is located at 535 Southwest 7th Street Des Moines, IA.
What is the asking price?
The asking price for this property is $15,475,954.
What are key features of this property?
This property features: Strategic location bridging suburban access and urban amenities.; Significant barriers to entry for similar small bay product development.; Optimum flexibility for office, warehouse, and showroom needs due to small bay format.
